Charter Conditions

Re-delivery

In the port of disembarkation the captain will inspect the vessel in the presence of the charterer.

In case of any damage, already paid funds by the charterer would be used to cover the damage. If the means paid and/or deposited by the charterer are not sufficient to cover the inflicted damages the charterer is obliged to cover the difference as soon as it is possible.

Delivery/re-delivery delay

The OWNER of the VESSEL is responsible for the delay in delivery of the VESSEL prior to the beginning of the CHARTER PERIOD, while the OWNER is obligated to pay to the CHARTERER a refund of the CHARTER FEE, the already paid CHARTER COSTS and SECURITY DEPOSIT if the CHARTER due to the above mentioned delay decides to terminate this agreement.

In case of a delay on the part of the OWNER, the PARTIES can agree that the OWNER shall allow the CHARTERER a pro rata extension of the charter period. The costs for the days of the delay will be covered by the OWNER.

If the CHARTERER fails to re-deliver the VESSEL to the OWNER at the port of re-delivery until the expiration of the CHARTER PERIOD due to intentional delay or change of itinerary against the captain's advice or due to some other reason which was caused either by the fault of the CHARTERER and/or the GUESTS, then the CHARTERER shall pay forthwith to the OWNER by direct telegraphic transfer via the above stated account or in any other appropriate way securing instant payment to the OWNER demurrage at the daily rate plus 40% (in words: forty percent) of the daily rate and if delay in re-delivery exceeds 24 (in words: twenty-four) hours the CHARTERER shall be liable to indemnify the BROKER and thus the OWNER for any loss or damage which they will suffer by the reason of deprivation of use the VESSEL or cancellation thereof or delay in a delivery under any subsequent charter of the VESSEL.

If the re-delivery of the VESSEL is delayed by reason of FORCE MAJEURE, the re-delivery will be executed as soon as possible thereafter and in the meantime the conditions of this agreement will remain in force but without penalty or additional charge against the CHARTERER.

Breakdown or disablement

If after delivery the VESSEL will at any time be disabled by breakdown of machinery, grounding collision or other cause which prevents reasonable use of the VESSEL during a period longer than 12 (in words. twelve) consecutive hours, and the disablement has not been brought by any act or default of the CHARTERER and/or the GUESTS, the BROKER will make a pro rata refund of the CHARTER FEE for the period of the disablement or, if mutually agreed, allow a pro rata extension of the CHARTER PERIOD corresponding to the period of disablement.

The CHARTERER will remain liable for all CHARTER COSTS and/or other related costs during the period of disablement.

Alternatively, after a consecutive period of disablement of more than 48 (in words: forty-eight) hours or one tenth of the CHARTER PERIOD, whichever the shorter, and dependent on the nature and seriousness of the disablement, by mutual agreement with the BROKER the CHARTERER may elect to remain on board of the VESSEL for the duration of the CHARTER PERIOD and the CHARTERER will then have no further or additional claims against the BROKER and/or the OWNER.

Cancellation

Should the charterer give a notice of cancellation of this agreement, the charterer is free to find replacement who will take over all his rights and obligations, but with the agreement of the owner.

If the charterer is not able to find the replacement, the owner withholds

30% of the CHARTER FEE for cancellation up to 2 months prior to the first day of the charter period

70% of the CHARTER FEE for cancellation up to 1 month prior to the first day of the charter period

100% of the CHARTER FEE for cancellation within the last month prior to the first day of the charter period

If the owner is not able to deliver the reserved vessel as agreed in this agreement, the owner will offer to the charterer another suitable yacht of the same or better type. If the replacement is not acceptable for the charterer, he/she/it can cancel this agreement but all the payments done by the charterer will not be refunded, while other rights for compensation for the benefit of the charterer are excluded.

In case that the owner is not able to deliver another vessel of the same, similar or better type, the charterer may withdraw from this agreement within the following deadlines: 24 hours for a charter period of up to 7 days; 48 hours for a charter period longer than 7 days; 72 hours for a charter period longer than 14 days. The same deadlines are applied for the periods of waiting for repairworks that occurred during the charter period for reasons not caused by the customers' fault. If the charterer rightfully withdraws from this agreement, all the payments done by the charterer will be refunded, or, in case that the withdrawal occurred during the charter period, the corresponding amount will be refunded to the charterer. Any other payments in favour of the charterer are excluded.

In case of a delay for reasons caused by the fault of the owner, the charterer has the right for a refund for the period of delay, as well as the right for compensation of the costs of night's accommodation if the night' accommodation is not possible on the reserved vessel or on a replacement vessel.

Insurance

The owner insured the vessel with first-class insurer against all customary risks for a vessel of its size and type. Copies of all relevant insurance documentation will be available for inspection by the charterer prior to the charter period on reasonable notice to the owner and will be carried on board the vessel.

Under normal circumstances the charterer will only be liable for such costs and/or losses as may be incurred repairing damage caused by the charterer and/or guests and/or visitors, intentionally or otherwise, and those costs will be deducted from the security deposit. In case that the security deposit amount does not suffice to cover the damage, the charter shall make an additional payment to cover the difference.

The charterer will carry independent insurance for personal effects whilst on board or ashore for the charter period, all for any medical and/or accident expenses incurred other than covered under the vessels's insurance.

Complaints

The charterer will give notice of any complaint in the first instance to the captain.

The complaint may be made verbally but shall be confirmed as soon as possible in writing by protocol signed by the charterer and the captain specifying the precise nature of the complaint.

The complaint in writing will be submitted to the owner and broker as well.

Arbitration

Any and all disputes arising out of this agreement, including those as related to its valid execution, breach or termination, as well as the legal effects arising from there, shall be settled by gentleman's agreement between the parties, and if the parties still cannot find a solution satisfactory for all parties, the dispute shall finally be settled by arbitration in accordance with the applicable Rules of International Arbitration of the Permanent Arbitration Court Attached to the Croatian Chamber of Economy as in force, all if the CHARTERER is a foreign natural and/or legal person.

Any and all disputes arising out of this agreement, including those as related to its valid execution, breach or termination, as well as the legal effects arising from there, shall be finally settled by arbitration in accordance with the applicable Rules on Permanent Arbitration Court with the Croatian Chamber of Economy, all if the CHARTERER is a Croatian natural and/or legal person. The number of arbitrators shall be 1 (in words: one) while the applicable substantial and procedure law shall be the Croatian law. The place of arbitration shall be Zagreb.